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Long-Term Contracts and Acquisitions are Among the key Strategies Adopted by the Leading players to grow in the Remote Weapon Station Market

In 2016, the remote weapon station market was dominated by Kongsberg Gruppen (Norway), Elbit Systems, PLC (Israel), Raytheon Company (U.S.), Saab AB (Sweden), Leonardo-Finmeccanica (Italy), and Thales Group (France), among others. These companies are expected to continue their dominance during the forecast period.

Contracts was the key strategy adopted by the companies to grow in the remote weapon station market. This strategy accounted for a share of 78% of the total growth strategies adopted by the players of the remote weapon station market between 2014 and 2016.

Top two players of the remote weapon station market

Kongsberg Gruppen (Norway) operates through four major segments, namely, Kongsberg Maritime, Kongsberg Defence Systems, Kongsberg Protech Systems, and Kongsberg Oil & Gas Technologies, wherein the Kongsberg Protech Systems deals with remote weapon stations (RWS). The company is a major supplier of remote weapon stations to the U.S. Army and is part of the U.S. Army’s Common Remotely Operated Weapon Station (CROWS) program. Kongsberg has supplied almost 17,000 RWS to 17 countries worldwide. Kongsberg remote weapon stations and modifies them according to the end user’s needs. The company has been awarded several contracts in recent years. Long-term contracts is the major strategy adopted by the Kongsberg Gruppen (Norway) for strengthening its position in the remote weapon station market. Some of the notable contracts of Kongsberg Gruppen (Norway) include a five-year contract worth USD 970 million that it received from the U.S. in August 2012 to supply system support and technical engineering support for its M153 CROWS program. This contract has helped the company to broaden its product portfolio, along with becoming one of the major providers of remote weapon stations in the global market space.

The Raytheon Company (U.S.) mainly offers its Phalanx Close-In Weapons System (CIWS) to various navies worldwide. The company is a major player and has received several contracts from countries of North America, Asia-Pacific, and Europe. The company, in recent years, has laid major emphasis on strategies of contracts and acquisitions to strengthen its product portfolio as well as position in the remote weapon station market. For instance, in October 2015, Raytheon received a contract worth USD 159.9 million to supply Phalanx’s Close-In Weapons System (CIWS) mounted with 20 mm gun system to the U.S. Navy. The Phalanx’s 20 mm gun system automatically tracks and destroys enemy threats with computer-controlled radar. Phalanx provides close-in defense against air, land, and sea threats. This contract has helped the company to increase its revenue to boost its Phalanx System.

Companies such as Elbit Systems, PLC (Israel), Thales Group (France), and Saab AB (Sweden) have made significant contribution to the global remote weapon station market. These companies, along with Leonardo-Finmeccanica (Italy), are expected to witness significant growth in the coming years, primarily owing to the strategies of long-term contracts and acquisitions adopted by them in recent years.